Vangvieng cement plants set to be converted for tourism 

Sites currently housing two decommissioned cement factories in Vangvieng, a popular tourism hotspot in Vientiane province, are set to be developed into a tourism complex, the investor has said.
The plan was announced after the factories were severely affected during the Covid-19 pandemic and suffered fierce competition in the cement market.

Vangvieng Cement Plant No. II, which will be transformed into a tourism complex.--Photo by Lao Cement public company

As a result, Vangvieng Cement Plant No. II, which came into operation in 2001 under a Lao-Chinese joint venture, ceased operation in 2020. The Lao partner owned a 40 percent stake and the Chinese partner held a 60 percent in the joint-venture company, which later become a public company after being listed on the Lao Securities Exchange.
Led by the Lao government’s plan to turn Vangvieng district into a tourism epicentre, Vangvieng Cement Plant No. I, which had been solely owned and operated by the Lao government since 1994, was also shut down in 2020.
“Industries pollute the environment and affect tourism,” said Khamponh Saylaovong, Deputy Director of the State Enterprise for Agriculture-Industry Development Import-Export & General Services – the Lao investor in the second cement plant.
After the proposal gained the support of the government and relevant ministries, the investors decided to go ahead with their plan to develop a tourism complex.
The complex will include a botanical garden, a zoo, and a theatre for performances by multiethnic Lao artists. The site will also feature a replica of the ancient city of Lanxang (the former name of the Lanxang Kingdom), streets with gift shops, hotels and more.     
Elephant shows and parades as well as elephant rides for tourists are also planned.
It is estimated that US$100 million is needed to bring the project to fruition during the first five years. Located along the Laos-China Railway, the two sites will be developed in stages.
Finance will be sought from the Chinese partner, Yunnan Qianhan Technology Network Limited, which is financially strong, Mr Khamponh said.
The investors are currently processing the necessary paperwork with the Ministry of Planning and Investment to change the company’s name from the Lao Cement Public Company to the Lao Cultural Tourism Public Company. The proposal also seeks to extend the concession period granted to the cement company, which will expire in 2027. The tourism company is asking for another 50-year concession.
Mr Khamponh is hopeful that approval will be granted and an investment licence issued in the next few months, enabling construction to start at the end of this year.
“Once approval is granted, we will start transforming the site of the Vangvieng Cement Plant No. II into a tourism complex,” the Deputy Director said, adding that the other site will be developed and integrated with the first site at a later date.
The cement plants themselves will be preserved and turned into tourism facilities.
The company currently owns the rights to 160 hectares of land. The investors plan to request that another 500 hectares of hilly terrain behind the plant be developed as a botanical garden with accommodation facilities, so that visitors can spend the night immersed in nature.
The Chinese investor holds a 35 percent stake in the public company, the Lao state enterprise owns 34 percent of the shares, and the rest are owned by other shareholders who bought shares when the Lao Cement Public Company was listed on the stock exchange.
Mr Khamponh said all the stakeholders were in agreement with the venture and are willing for the area to be turned in a tourism complex, with priority to be given to local people when it comes to hiring workers.
Three companies are working to submit bids to win the contract for the project.
Mr Khamponh added that the public company is currently building its 21-storey headquarters in Phonphanao village, Vientiane. The facility will contain offices and condominiums, to accommodate the company’s clients travelling from Vangvieng to Vientiane.

By Souksakhone Vaenkeo
 (Latest Update July 20, 2023)